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Tourist operators, however, were welcomed and encouraged to build on oceanfront land - to transform the former fishing village into a "high-end boutique tourism destination (with) five-star resorts, luxury chalets, (and even a) floatplane pier and helipad."
It was to be a model for transforming around 30 similar zones into a South Asian Riviera to let Sri Lanka reenter the world economy as one of the last remaining uncolonized places globalization hadn't touched. High-end tourism was the ticket - to provide a luxury destination for the rich once a few changes were made. Government land was opened to private buyers. Labor laws were relaxed or eliminated. Modern infrastructure would be built, and public opposition suppressed to let plans proceed unimpeded.
The same scheme followed Hurricane Mitch in October 1998 when Honduras, Guatemala and Nicaragua were hardest hit. In Sri Lanka, Washington took the Mitch model to the next level - beyond individuals to corporate control over reconstruction. Business ran everything. Affected people were shut out. Klein called it a new type corporate coup mother nature made possible. Now again in Haiti with an idea of what's coming.
Powerful business interests constructed a blueprint from housing to hotels to highways and other needed infrastructure. Disaster relief went for development. Victims got nothing and were consigned to permanent shantytowns like the kinds in most Global South cities and Global North inner ones. Aceh and other affected areas adopted the same model.
A year after the tsunami, the NGO Action Aid surveyed the results in five Asian countries and found the same pattern - residents barred from rebuilding and living in militarized camps, while developers were given generous incentives. Lost was their way of life forever.
The same scheme played out in New Orleans with unfettered capitalism given free reign. With considerable Bush administration help, mother nature gave corporate predators a golden opportunity for plunder. Prevailing wage rates for federally funded or assisted construction projects were suspended. So were environmental regulations in an already polluted area, enough to be designated a superfund site or toxic waste dump. Instead, redevelopment was planned.
As a previous article explained, New Orleans had ample warning but was unprepared. The city is shaped like a bowl, lies below sea level, and its Gulf coast is vulnerable. As a result, the inevitable happened, affecting the city's least advantaged - the majority black population targeted for removal and needing only an excuse to do it. The storm wiped out public housing and erased communities, letting developers build upscale condos and other high-profit projects on choice city land.
It was right out of the Chicago School's play book, what economist Milton Friedman articulated in his 1962 book, "Capitalism and Freedom." His thesis:
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